The Need for Healthy Small Businesses
Maintaining healthy small businesses is often cited as
an important element to the economic recovery because
of their considerable contributions to the overall economy.
Small businesses employ more than half of private sector
workers and have generated well over half of net new jobs
annually over the past decade. They have created more
than half of non-farm business gross domestic product.
A vibrant small business development strategy is usually
an integral part of larger community development strategies
within low- and moderate-income (LMI) communities
because of the vital local jobs these firms create and
the essential products and services they provide to their
local communities. Recognizing their importance, the Administration
recently reduced fees and increased guaranty
levels of the Small Business Administration’s (SBA) loan
programs to increase access to credit and to encourage
small business economic activity. These measures have recently
begun to demonstrate improved credit flow to small